Budgetary Control

The first step to be taken before any budgetary control can effectively take place is to have a business plan detailing what your plans for the business actually are.

Budgetary control gives a suggestion of the business being controlled within a very tightly defined area, but we all know that business is dynamic, flexible, often unpredictable, and so the systems we operate in business must be capable of coping with the stresses and strains of the environment in which we operate.

Watts Accountancy can help organisations develop budgetary control systems to meet their specific requirements incorporating both financial and non financial information, to give a full picture of the current position of the business.

What we will do:

The exact details will be tailored to your specific requirements but we can work with you in the following areas :

·          Understanding the cost structure of your organisation

·          Review alternative costing systems

·          Establishment of budgets for any period of time (daily, weekly, monthly, half yearly, annually etc)

·          Ensuring budgetary control systems are an integral part of your business, including complementing any established financial accounting systems

·          Discuss use of commitment accounting

·          Establishing and reviewing the “key performance indicators” for your business

·          Establishing the systems that are most appropriate to your organisation

·          For larger and growing organisation we may also explore the principles of delegation, responsibility, authority, segregation of duties and appropriate internal controls.

The introduction of appropriate budgetary control systems will give you an early indication when things are not going to plan.  These variations from plan can be both positive and negative which businesses should seek to understand.  They should seek to exploit the positive and address the negative or make appropriate revisions to their plans.  Watts Accountancy can assist in these areas by the provision of management accountancy service.